Montréal, April 8, 2008 Vidéotron Ltd. today announced the pricing of its offering of US$455 million aggregate principal amount of its senior notes. The new senior notes will be sold at a price of 98.432% of par, will carry a coupon of 9 1/8% and will mature on April 15, 2018.
Vidéotron intends to use the proceeds of this offering to repay drawings under its senior secured credit facility and for general corporate purposes.
Vidéotron also today announced that it has entered into amendments to its senior secured credit facility pursuant to which commitments under the senior secured credit facility have been increased to CAN$575.0 million and the maturity of the facility has been extended to April 2012. Pursuant to these amendments, Vidéotron will, subject to certain conditions, also be able to increase the commitments under the senior secured credit facility by an additional CAN$75.0 million (for aggregate commitments of CAN$650.0 million).
This press release is not an offer of securities for sale in the United States. The senior notes have not been registered under the United States Securities Act or applicable state securities laws, and the senior notes may not be offered or sold in the United States absent registration or an applicable exemption from registration. The notes have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the notes in Canada will be made on a basis which is exempt from the prospectus and dealer registration requirements of such securities laws.
Vidéotron Ltd. (www.videotron.com), a wholly owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephony and wireless telephone service. Vidéotron is a leader in new technologies with its illico interactive television system and its broadband network, which supports high-speed cable Internet access, analog and digital cable television, and other services. As of March 31, 2008, Vidéotron was serving over 1,652,200 cable television customers in Quebec, including approximately 802,800 illico Digital TV subscribers. Vidéotron is the Quebec leader in high-speed Internet access, with approximately 965,300 subscribers to its cable modem service. As of March 31, 2008, Vidéotron had activated 49,900 lines on its wireless telephone service and was providing cable telephone service to nearly 691,600 Quebec households and organizations.
Forward-Looking Statements
Statements contained herein relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are made pursuant to the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industries in which we operate as well as beliefs and assumptions made by our management. Such statements include, in particular, statements about our plans, prospects, financial position and business strategies. Words such as "may," "will," "expect," "continue," "intend," "estimate," "anticipate," "plan," "foresee," "believe" or "seek" or the negatives of these terms or variations of them or similar terminology are intended to identify such forward looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements, by their nature, involve risks and uncertainties and are not guarantees of future performance. Such statements are also subject to assumptions concerning, among other things: our anticipated business strategies; anticipated trends in our business; and our ability to continue to control costs. We can give no assurance that these estimates and expectations will prove to have been correct. Actual outcomes and results may, and often do, differ from what is expressed, implied or projected in such forward-looking statements, and such differences may be material. Some important factors that could cause actual results to differ materially from those expressed in these forward-looking statements are discussed in further detail in Videotron's Annual Report on Form 20-F for the fiscal year ended December 31, 2007, including under the sections, "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors." Videotron disclaims any obligation to update these statements unless applicable securities laws require us to do so.
